Rishi Shah, the former CEO of Outcome Health, was sentenced to 7½ years in prison by a federal judge for his involvement in a fraud scheme. Prosecutors accused him of participating in a deceptive scheme that allowed him to live a lavish lifestyle involving private aircraft, yachts, and an upscale Chicago home. U.S. District Judge Thomas Durkin issued the sentence following a multiday sentencing hearing that included Shah’s co-defendants, former Outcome president Shradha Agarwal and former chief operating officer Brad Purdy.
Prosecutors described Rishi Shah as the mastermind behind a billion-dollar fraud, constructing a deceitful foundation at Outcome Health brick by brick. They requested a sentence lasting 15 years, emphasizing that anything less would compromise respect for the law. Defense attorneys for Shah insisted that most of the victims affected by the fraud at Outcome Health had been reimbursed for their losses.
Outcome Health focused on working with pharmaceutical companies, selling advertisements for televisions and tablets that were provided to doctors’ offices and waiting rooms. Prosecutors argued that the company’s executives misled advertisers about where the ads would be displayed, leading to inflated revenue figures used to secure loans and investors. The company experienced rapid growth, expanding from 16 employees in 2011 to over 500 staff members in 2017, with an estimated value exceeding $5 billion.
Shradha Agarwal and Brad Purdy also involved in the fraudulent scheme will be sentenced later this week. The defense contended that another individual who had previously pleaded guilty to wire fraud was responsible for the fraudulent activities and testified against them. This person Ashik Desai has a sentencing scheduled for September.
The evidence presented at trial showed communication between the former executives and Ashik Desai suggesting they were aware of the company’s issues despite their attempts to shift blame
